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Demography, family, and gender

Population characteristics strongly predict labor market success. One of the biggest economic changes has been the rise of women in the labor market. The upcoming demographic imbalances suggest substantial adjustment processes on labor markets around the globe. The articles in this subject area provide evidence relating the role of demography in social, cultural, and biological processes to their effects on worker well-being.

Childcare provided by grandparents helps young working mothers,
but reduces the labor supply of older women

Older people in developed countries are living longer and
healthier lives. A prolonged and healthy mature period of life is often associated with
continued and active participation in the labor market. At the same time, active grandparents
can offer their working offspring a free, flexible, and reliable source of childcare. However,
while grandparent-provided childcare helps young parents (especially young mothers) overcome
the negative effects of child rearing on their labor market participation, it can sometimes
conflict with the objective of providing additional income through employment for older
workers, most notably older women.

Excessive drinking is the main cause of high
male mortality rates, but the problem can be addressed

Eastern European countries, particularly former
Soviet Union economies, traditionally have the highest rates of alcohol
consumption in the world. Consequently, they also have some of the highest
male mortality rates in the world. Regulation can be effective in
significantly decreasing excessive drinking and its related negative
effects, such as low labor productivity and high rates of mortality.
Understanding the consequences of specific regulatory measures and what
tools should be used to combat excessive alcohol consumption is essential
for designing effective policies.

Female labor force participation is mainly
driven by the value of women’s market wages versus the value of their
non-market time. Labor force participation by women varies considerably
across countries. To understand this international variation, one must
further consider differences across countries in institutions, non-economic
factors such as cultural norms, and public policies. Such differences
provide important insights into what actions countries might take to further
increase women’s participation in the labor market.

Women’s labor force participation has rapidly
increased in most countries, but mothers still struggle to achieve a
satisfactory work−life balance. Childcare allows the primary caregiver,
usually the mother, to take time away from childrearing for employment.
Family policies that subsidize childcare and increase its availability have
different effects on female labor supply across countries. For policymakers
to determine how well these policies work, they should consider that policy
effectiveness may depend on country-specific pre-reform female employment
and earnings, and childcare availability, costs, and quality.

Improving outcomes for women takes more than
raising labor force participation—good jobs are important too

The relationship between female labor force
participation and economic development is far more complex than often
portrayed in both the academic literature and policy debates. Due to various
economic and social factors, such as the pattern of growth, education
attainment, and social norms, trends in female labor force participation do
not conform consistently with the notion of a U-shaped relationship with
GDP. Beyond participation rates, policymakers need to focus on improving
women’s access to quality employment.

A mix of policies could be the solution to
reducing discrimination in the labor market

Discrimination is a complex, multi-factor
phenomenon. Evidence shows widespread discrimination on various grounds,
including ethnic origin, sexual orientation, gender identity, religion or
beliefs, disability, being over 55 years old, or being a woman. Combating
discrimination requires combining the strengths of a range of
anti-discrimination policies while also addressing their weaknesses. In
particular, policymakers should thoroughly address prejudice (taste-based
discrimination), stereotypes (statistical discrimination), cognitive biases,
and attention-based discrimination.

Households can benefit from international trade
as it lowers the prices of consumer goods

Imported products tend to have lower prices than
locally produced ones for a variety of reasons, including lower labor costs
and better technology in the exporting country. The reduced prices may lead
to wage losses for individuals who work in the production of a local version
of the imported item. On the other hand, lower prices may be beneficial to
households if the cheaper product is in their consumption basket. These
welfare gains through consumption, on average, are found to be larger in
magnitude than the wage effect for some developing countries.

Individual and environmental factors can lead
women to start innovative market-expanding and export-oriented ventures—or
block them

Female-led ventures that are market-expanding,
export-oriented, and innovative contribute substantially to local and
national economic development, as well as to the female entrepreneur’s
economic welfare. Female-led ventures also serve as models that can
encourage other high-potential female entrepreneurs. The supply of
high-potential entrepreneurial ventures is driven by individuals’
entrepreneurial attitudes and institutional factors associated with a
country’s conditions for entrepreneurial expansion. A systematic assessment
of those factors can show policymakers the strengths and weaknesses of the
environment for high-potential female entrepreneurship.

What are the implications of childcare subsidies
for care quality, family well-being, and child development?

Most public expenditure on childcare in the US
is made through a federal program, the Child Care and Development Fund
(CCDF), established as part of landmark welfare reform legislation in 1996.
The main goal of the reform was to increase employment and reduce welfare
dependence among low-income families. Childcare subsidies have been
effective in enabling parents to work, but apparently at some cost to the
well-being of parents and children.